Yahoo Finance Coca-Cola (KO) Stock Sinks As Market Gains: What You Should Know
Coca-Cola (KO) closed the most recent trading day at $63.28, moving -1.71% from the previous trading session. This move lagged the S&P 500's daily gain of 0.16%. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq added 0.49%.
Heading into today, shares of the world's largest beverage maker had gained 2.4% over the past month, outpacing the Consumer Staples sector's loss of 0.69% and the S&P 500's loss of 6.79% in that time.
Coca-Cola will be looking to display strength as it nears its next earnings release, which is expected to be July 26, 2022. In that report, analysts expect Coca-Cola to post earnings of $0.68 per share. This would mark no growth from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $10.83 billion, up 6.92% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.47 per share and revenue of $42.1 billion, which would represent changes of +6.47% and +8.9%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Coca-Cola. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. Coca-Cola is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Coca-Cola is currently trading at a Forward P/E ratio of 26.1. This represents a premium compared to its industry's average Forward P/E of 21.33.
Also, we should mention that KO has a PEG ratio of 3.74. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Beverages - Soft drinks industry currently had an average PEG ratio of 2.77 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 141, which puts it in the bottom 45% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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CocaCola Company The (KO) : Free Stock Analysis Report
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